La. Revenue and Taxation § 47:605.1

Current with changes from the 2024 legislative session effective on or before 7/1/2024, from Acts 2,3, 6-535, and 580-647

Section 47:605.1 - Capital stock, surplus, and undivided profits

A. If a corporation's total debt to all related parties exceeds the capital stock and surplus and undivided profits of the corporation as determined under R.S. 47:604 and 605, then fifty percent of the amount of the excess shall be included in the capital stock and surplus and undivided profits of the corporation and excluded from debt.

B. For purposes of this Section, "debt" shall not:

(1) Include trade debt that is less than one hundred eighty days old,

(2) Include deposit liabilities to related parties, or

(3) Be reduced by receivables.

C. For purposes of this Section, "related party" means any member of a controlled group of corporations as defined in 26 U.S.C. 1563, or any other person that would be a member of a controlled group if rules similar to those of 26 U.S.C. 1563 were applied to that person.

La. Revenue and Taxation § 47:605.1

Acts 2004, 1st Ex. Sess., No. 2, §1, eff. Jan. 1, 2006; Acts 2005, No. 355, §1, eff. Jan. 1, 2006, for taxable periods beginning after Dec. 31, 2005.

Acts 2004, 1st Ex. Sess., No. 2, §1, eff. 1/1/2006; Acts 2005, No. 355, §1, eff. 1/1/2006, for taxable periods beginning after 12/31/2005.